Build it
Build it
Development finance
Ground-up, conversion and part-built schemes, from site purchase to exit.
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Development finance
Which cap binds, loan to cost or loan to GDV, and the real day-one equity.
Build to Rent development
Underwritten on stabilised yield and DSCR, not sales rate.
Mezzanine and stretched senior
The gap between senior LTC and what you can fund, and the true blended cost.
Heavy refurbishment and conversion
Where refurbishment stops being a bridge: structure, change of use, drawdowns.
Part-built and rescue finance
Valuing an unfinished asset when the contractor has gone.
Bridge it
Bridge it
Bridging finance
Short-term debt where the deadline, the asset or the exit will not wait.
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Purchase bridge
Completing before the money is in place: chain breaks, tight deadlines, unmortgageable stock.
Development exit finance
Off development debt at a lower rate, to buy sales time and release equity.
Auction finance
A 28-day clock, and what must be in place before the hammer falls.
Pre-planning and planning gain
Lending against current value with planning upside.
Below market value purchase
Day-one lending against open market value rather than price.
Second charge and capital raising
Raising against existing assets, and first-charge consent.
Light refurbishment finance
Bridge plus refurb tranche, and where the development boundary sits.
Also structuredBridge to let and refinance
Hold it
Hold it
Mortgages and term finance
Long-term debt against income, once the asset is built, let or trading.
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Buy to let mortgages
ICR stress testing, limited company against personal, portfolio rules.
HMO mortgages
A higher cover test, licensing, and the two valuations a lender takes the lower of.
Commercial term, investment
Tenant covenant and lease term, and why DSCR sets the loan.
Commercial term, owner-occupier
Trading accounts and EBITDA rather than rent roll.
Portfolio refinance
Cross-collateralisation, and one facility against individual loans.
Stabilisation and term refinance
The income test replacing the GDV test, and the letting void before term debt engages.
Co-living and PBSA
An operational asset valued on income, and the operator covenant.
Run it
Run it
Business finance
Funding the business behind the property, secured on the ledger, the equipment or the covenant.
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How we work
Case studies
Articles
Tools
Development finance calculator
Size the facility against site cost, build cost and GDV.
Development exit calculator
Refinance the development facility and release equity at PC.
Bridging finance calculator
What a bridge costs, and what actually clears on day one.
Refurbishment finance calculator
Fund the purchase and 100% of the works, with interest rolled to exit.
BTL rental cover calculator
The rent a buy to let must achieve to clear a lender's cover test.
Commercial mortgage calculator
What a commercial property's income will support, and what it costs.
About
Enquire now
Rental cover calculator
Buy to let lending is sized on the rent, not on what you can afford. A lender tests the rent against the mortgage interest at a stressed rate you are not paying, and requires it to clear by a margin. Set the purchase below and this gives you the rent you need to hit.
Purchase price, or the valuation if you already own it.
£
£50k£10m
75% is the common ceiling. Some lenders go higher, most
price better below it.
%
40%80%
The rate the rent is tested at, not the rate you pay. 5.5%
is the usual floor; on a five year fix a lender will often test at the pay rate.
%
3%9%
Who is borrowing
This sets the interest cover ratio the rent has to clear.
The rent you need
Minimum monthly rent
£1,074
To clear 125% cover on the interest at
5.5%.
Mortgage required£187,500
Deposit required£62,500
Monthly interest at the stress rate£859
Cover applied125%
OR WORK BACKWARDS
Enter the rent the property actually
achieves and see the loan it supports.
£
Type a rent to see the maximum loan.
Send these figures over
We will come back with the lenders whose cover test this
property actually passes, and what they would charge. No obligation.
Interest only, which is how most buy to let lending is written. Minimum rent is the
monthly interest at the stress rate multiplied by the cover ratio. Lenders differ on all
three of the numbers you set above, and a few will use a lower stress rate on a longer
fix, so treat this as the test to beat rather than a quote. It takes no account of the
valuer's own rental assessment, which is what a lender actually lends against.
What the calculator assumes
The calculation is interest only, which is how most buy to let lending is written. The minimum rent is the monthly interest at the stress rate multiplied by the cover ratio. All three inputs are yours to change because lenders genuinely differ on all three, and a few will test a longer fix at the pay rate rather than a stressed one. What it cannot tell you is the valuer's own rental assessment, which is the figure a lender actually lends against when the two disagree.
125%
Company or basic rate
145%
Higher or additional rate
160%
HMO or multi-unit
5.5%
Usual stress floor
Indicative, and not an offer. What a lender will actually do depends on the scheme, the borrower and a full valuation.
What to have ready
The estimate is only as good as what goes into it.
Each one is something a lender will ask for anyway. Having it to hand is the difference between a number and an appraisal.
✓The property, the price, and the rent with comparable lettings evidence
✓Whether you are buying personally or through a limited company, and why
✓Your deposit, and demonstrably where it is coming from
✓Your existing portfolio, if you hold four or more mortgaged properties
✓EPC rating, and any licensing the property needs
✓How long you intend to hold, because that changes which product fits
Where this leads
The products behind the arithmetic.
Specialist property finance for developers who want the numbers to survive underwriting.
020 4572 4266LinkedIn
Fundingwise Limited is not authorised or regulated by the Financial Conduct Authority, and arranges unregulated finance only. That means lending secured against commercial property, or against residential property that is not, and will not be, occupied by the borrower or an immediate family member as a main residence. We do not advise on or arrange regulated mortgage contracts or regulated bridging loans. Because this finance is unregulated, FCA conduct rules and access to the Financial Ombudsman Service do not apply. Fundingwise Limited is registered in England and Wales, company number 13750788.